Future-proofing insurance: Trends shaping the industry in India
Trends in India's growing market with Zurich Kotak General Insurance
According to the Swiss Re Sigma report’ 2021, India’s Insurance market is the 10th biggest insurance market in the world in terms of premium volumes and is expected to become the 6th biggest market by 2032. Being the 2nd largest emerging market, it is expected to reach $200 Bn by 2027. Zurich Kotak General Insurance has been a significant driver of the growth of the insurance sector in India.
IRDAI and insurance providers are working together to improve the Indian Insurance Future growth by improving market penetration, digitisation, regulator reforms and the development of consumer-focused products. In this blog, we will discuss the top industry trends and the future of Insurance in India.
Top industry trends in the insurance technology
The top industry trends in insurance technology focus on three main aspects of insurance: claims management, underwriting and customer service. Here are the top trends that facilitate insurance innovation and provide future-proof solutions.
Fast-paced digitisation
The implementation of online platforms and mobile apps has made it easier for customers to explore, compare, purchase and renew insurance products at any time and from any location. It also makes the claim process faster and more efficient without cumbersome paperwork. Similarly, the automation of the underwriting process reduces human error and claim-processing time.
Use of data analytics
The huge amount of data available can be used to understand customer behaviour, detect fraud, and manage risks. This information can be used to develop products aligned with customer preferences. Further, the use of Artificial Intelligence (AI) and Machine Learning (ML) helps in interpreting complex data and predicting trends.
Involvement of Fintechs and Insurtechs
The involvement of fintech and insurtech firms has helped transform distribution and introduce innovation in sales channels. Strategic collaboration of banks with fintech and insurtech firms has helped in providing innovative products and value-added services to the customers, thus improving the reach.
Risk prevention and data security
With the use of technology, there is an increased risk of fraud. Blockchain technology generates smart policy contracts and encrypts medical records for more secure and efficient operation. Cybersecurity measures are also used to prevent cyberattacks and save data and systems.
Future of Insurance in India
“Insurance for all by 2047” is IRDAI’s vision to improve insurance penetration in India. The objective of this vision is to provide insurance coverage to every citizen and every enterprise in India. The many changes proposed by IRDAI include;
Introduction of a bundled product Bima Vistar to provide life, health, accident and property cover under a single affordable policy.
Launching a one-stop platform Bima Sugam for customers that integrates insurers and distributors
Providing value-added services with insurance policies.
Forming insurance committees in states to expand insurance coverage across districts
Educating and empowering women to lead campaigns as Bima Vaahaks in gram sabhas, to spread awareness about insurance and financial security.
Conclusion
Indian Insurance’s Future looks promising with the latest industry trends, product innovation, regulatory changes and a customer-centric approach. The insurance industry also plays an important role in the financial sector and employment generation, contributing to GDP growth.
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